Archive for the ‘Financing’ Category

According to Lawrence Yun, chief economist from the National Association of REALTORS, “Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. Affordability has reached a generational high in the second of this yer because of rock bottom mortgage interest rates, helped partly by the Fed’s very ccommodative monetary policy.”For more reasons why now is a prime time to buy a home, contact me and I’ll send you a free ebook.

I just read a great ebook called “7reasons Why Now is a Great Time to Buy a Home!”It’s filled with positive, exciting information to help buyers seize the incredible market opportunities available to them right now. Over the next seven weeks, I’ll be sharing key excerpts from this ebook with you in my blog. For a free copy of the ebook, contact me and I will send it your way. 323.804.2008

Daily Real Estate News | April 28, 2010 | As the home buyer tax credits near their end, analysts are concluding that the program was both expensive and successful.

The Treasury Department estimates that the credits helped 1.8 million people buy homes, but critics reply that two-thirds of the $12.6 billion in credits spent through the end of February went to people who would have purchased a home anyway.

Sen. Johnny Isakson, a Republican from Georgia, who worked as a real estate practitioner for 30 years and pushed through the 2010 extension and expansion of the program, says: “It’s true that a lot of people who got the credit might have bought without it, but they might have bought in 2012 or 2013. This got them to buy in 2009 and 2010, when we needed to shore things up.”

Economist Mark Zandi at Moody’s Economy.com agrees. “The tax credit helped to stanch the price declines, which had substantial benefit for the entire economy,” he says. “The home is still the largest asset on most people’s balance sheet, so when prices are falling, nothing works for most families. But now people can take a deep breath and think clearly again.”

Americans still want a house By Ben Rooney, staff reporterApril 6, 2010: 2:10 PM ET NEW YORK (CNNMoney.com) —

Nearly two-thirds of Americans would still prefer to own a home, although the recent housing market turmoil and uncertain economy have made them a little more cautious about how and when, according to a survey released Tuesday. A nationwide survey conducted by mortgage lender Fannie Mae found 65% of the homeowners and renters believe there is still value in owning a home.

But the survey also suggests that potential home buyers have become more cautious in the years since the housing bubble burst, giving rise to a wave of foreclosures and a severe recession. “Consumers are still committed to owning a home, but are showing increased cautiousness,” said Doug Duncan, chief economist at Fannie Mae. He said the downturn in the housing market has led to a “rebalancing” of consumer attitudes towards homeownership. Americans are adopting a more realistic approach and are now less willing to take risks, he said. The survey showed that home buyers are growing more concerned with longer- term priorities, as opposed to the house “flipping” mentality that characterized the market during the boom years. Over 40% said personal safety was their main consideration when buying a home, while a third indicated that the quality of local schools was the dominant factor. America’s most overvalued cities One of the purposes of the survey is to try to more closely monitor the market, according to Duncan. That way, industry players and policy makers can take steps to stimulate the housing market when it slows too much and put the brakes on when it threatens to overheat. “This survey was done to get a level set about what the public is thinking about housing after the huge disruption,” said Duncan. “We wanted to understand the current and expected behavior of borrowers, and how to help people who have had difficulties.” 0:00 /3:41Trump: Don’t fear a real estate collapse The survey showed that 60% believe buying a home today is harder than it was for their parents, and nearly seven in ten believe it will be even more difficult for their children. Still, about two-thirds of respondents believe now is a good time to buy a house, and nearly one in three said now is a very good time to buy a house. This is nearly as many who said it was a good time to buy in 2003, well before home prices peaked, Fannie Mae said. A full 70% said they believe buying a home continues to be one of the safest investments available. That’s down from 83% in 2003. “The investment motive took a hit,” said Duncan. Nearly three-quarters anticipate housing prices will go up or stay the same over the next year, according to the survey. That includes 37% who see prices will increase and 36% who feel prices will remain about the same. A majority of respondents said it is unacceptable for a homeowner to stop making payments on their mortgage when the value of the property falls below the balance of the loan, a condition known as being “underwater.” However, the survey showed that 15% believe it is acceptable to stop making payments on an underwater mortgage if the homeowner is financially distressed. The survey was conducted by telephone this winter with 3,451 Americans age 18 and older. — CNNMoney.com senior writer Les Christie contributed to this report.